Chancellor George Osborne admits blunders over Budget

George Osborne has promised he will not be “distracted” by Liberal Democrat
demands over gay marriage and House of Lords reform, insisting he would be
working for a Conservative majority at the next general election.

In his first major interview since last week’s local election results, the Chancellor conceded that “things have gone wrong” in the economy and that the Budget should have been presented more effectively to voters.

He said he would not be “distracted” by rows over issues which are “absolutely not” a priority and pledged to “focus the things that really matter” to the public. The Chancellor’s comments form part of a co-ordinated attempt by the Conservative leadership to regain the initiative after dire local election results and six weeks of grim headlines since the Budget.

In the wake of Thursday’s election defeats, which saw the Tories lose more than 400 council seats, a procession of Conservatives have demanded that the Prime Minister and the Chancellor adopt a more stridently Right-wing agenda.

Yesterday, Lord Ryder, a former chief whip, told David Cameron to “get a grip”, claiming that he “lacks coherence”, while Nadine Dorries, a back-bench MP, alleged that the Prime Minister could be forced out by Christmas.

“Nadine Dorries for the last seven years hasn’t agreed with anything that either myself, David Cameron or indeed most Conservatives... have done,” he said. “She has objected to the modernising of the Conservative Party. We have got to focus on what really matters.”

However, the Chancellor said he understood the “message” from the electorate and issued his own plea to voters.

“The Government understands your message. We take it on the chin, we’re going to learn from what you’re saying,” he said.

“What people are saying is focus on the things that really matter, focus on the economy and on education and welfare. Focus on those things, don’t get distracted by too many other issues.”

He said there would be no Bill legalising gay marriage in the Queen’s Speech and insisted that reforming the House of Lords, a key Liberal Democrat policy, was “absolutely not” a high priority.

Mr Osborne admitted that the Lib Dems were stopping Conservatives acting on some of their priorities, including reforming the European Court of Human Rights and relaxing employment rights to make it easier for firms to hire and fire staff.

“If you’re saying to me, 'At the next election would I like a Conservative majority?’ Yes, I would.”

Writing in a Sunday newspaper, Mr Osborne, the Conservatives’ election strategist, also accepted “responsibility” for the controversies that have dogged the Government since the Budget.

He admitted that rows over tax reforms for pensioners, pasties and charitable giving meant that his announcement of cutting taxes for the lowest paid workers had been overshadowed.

“The way the Budget was presented meant this message wasn’t heard. I take responsibility for that,” Mr Osborne said.

However, the comment was immediately undermined by Vince Cable, the Business Secretary, who warned that it was in danger of “missing the point” and drawing further attention away from the “positive” substance of the Budget.

Ed Balls, the shadow chancellor, said Mr Osborne’s economic plans had “failed”, but admitted he had “not costed” Labour’s “whole programme” for the economy.

He said Mr Osborne was “very complacent” to suggest that his Budget had been criticised because it was not communicated properly.

“It’s not about spin,” Mr Balls said. “People want a plan which will work.”